Transcript Creating Customer Value, Satisfaction and Loyalty

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Creating Customer
Value, Satisfaction, and
Loyalty
Figure 5.1 Customer-Orientations
What is
Customer Perceived Value?
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Customer perceived value is the
difference between the prospective
customer’s evaluation of all the benefits
and all the costs of an offering and the
perceived alternatives.
Figure 5.2 Determinants of
Customer Perceived Value
Total customer benefit
Total customer cost
Product benefit
Monetary cost
Services benefit
Time cost
Personnel benefit
Energy cost
Image benefit
Psychological cost
Caterpillar Maximizes
Customer Value
What is Loyalty?
Loyalty is a deeply held commitment to rebuy or re-patronize a preferred product or
service in the future despite situational
influences and marketing efforts having the
potential to cause switching behavior.
Top Brands in Customer Loyalty
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Apple iPhone
Clairol
Samsung
Mary Kay
Grey Goose
Clinique
Avis
Wal-Mart
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Google
Amazon
Bing
J.Crew
AT&T Wireless
Discover Card
Verizon Wireless
Cheerios
What is Customer Satisfaction?
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Customer Satisfaction is the extent to
which product’s perceived performance
matches a buyer’s expectation.
Measuring Satisfaction
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Periodic surveys
Customer loss rate
Mystery shoppers
Monitor competitive performance
What is Quality?
Quality is the totality of features and
characteristics of a product or
service that bear on its
ability to satisfy
stated or implied needs.
What is
Total Quality Management?
TQM is an organization-wide approach to
continuously improving the quality of all
the organization’s processes, products and
services.
What is
Customer Lifetime Value?
CLV is the value of entire stream of
purchases that the customer would make
over a lifetime of patronage.
What is
Customer Equity?
Customer Equity is the total combined
customer lifetime values of all of the
company’s customer.
What is
Customer Relationship Management?
CRM is the overall process of building and
maintaining profitable customer
relationship by delivering superior
customer value and satisfaction.
What is
Partner Relationship Management?
PRM is working closely with partners in other
company departments and outside the
company to jointly bring greater value to
customer.